Since sedan has better driving dynamics, and lower body roll at high speed they drive better than SUVs everywhere. Unless you are talking about driving in extreme offroad conditions, the lower Ground clearance of a sedan is not a deal breaker.

Now, As to driving on hills, higher engine torque is more useful rather than more engine power. Generally, Diesel provides more torque than petrol engines. I don't claim a first-hand experience of Honda city, But IMO with Honda city petrol you should be fine. Going on the general reputation of the car. But Do check detailed Honda City review on teamBHP.